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Do you think compounding is important?


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If it is for me, I like to with draw my profit and see the fruit of my labour. I don't like to compound because I know that I can lose the money. If I make profit and is able to withdraw my profit, it will make me to be very very motivated to trade but if I don't, I will not be motivated to trade.

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If it is for me, I like to with draw my profit and see the fruit of my labour. I don't like to compound because I know that I can lose the money. If I make profit and is able to withdraw my profit, it will make me to be very very motivated to trade but if I don't, I will not be motivated to trade.

 Depend on trader itself. Compounding can make our trading capital is bigger but we also must be able to discipline when trading. Do not be greedy trader. Emotion should be controlled.

 

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That is the concept dear. When you have a bigger capital, there is the likelihood that you turn out making a bigger profit. Compounding is quite important as a way to raise a better capital and also expect a better return. The more our capital is, the lesser risk we take and the more the profit we shall make.

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  • 2 weeks later...

to those who has high capital on trading account, usually will withdraw all the profit. however, when traders focus still to make capital increase, mean they need to compound the profit and withdraw it half only. which mean capital has chance to increase and traders can withdraw the profit too.

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Big question is this. Can you handle your account? You can't just say you going to compound your money in forex because you actually can't do compounding. At most you can do is to open more trading position. So if you open 2 lot size and you make profit your next trade you open 3 lot size and so on. But the big question is what if you going to end up at loss? then you loss every thing in just one trade.

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Its really not important since you actually can't compound your money in forex trading. Yes you can have more free leverage to use but in the long run its still going to get MC if you don't know how to handle your trading account. So what the use of thinking that you are compounding when you can actually still end up losing all of your money in forex trading?

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I think that compounding is very necessary because it would make our capital grow more and we can think of more profits then afterwards, however I do not support investing all profit back but it should be based on 50/50 basis.

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what i really understand on this forex trading is to be adding funds on it regulary to make your capital big not to be withdrawing funds from it monthly because you wount make enough profits on it that way.

I seen you post in as many forex trading threads. Why not be active in forex trading so that you can get some experience and know and get some ideas on how to trade and make profit in forex. I do cashout my profit each month and I do maintain my account. Theirs nothing wrong in casing out your money in forex as long you do know how to trade.

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depend on traders, when they are thinking that they need to compound their profit, they can withdraw it half. however, if they are consider to increase the capital, usually they are let the profits keep in trading account to enabling them to use higher margin per trades. or when trader use high capital already, probably they will withdraw all the profit.

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I think that compounding depends on the forex trader himself as well because it is upto him whether he wants to invest back the profit or does he want to withdraw all the profit or a part of it, so according to the situation we should choose the best thing for us.

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Compounding is very good and am doing it when ever I make my profit I devide it into the rate of ratio where I channels some to my account back which is actually the best for me And that is true of what I know and think and that is where my equity and lots get increase as well and that is what I think every experience traders is doing

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  • 2 weeks later...

It's extremely good of you to mention the emotional issue listed here. I have experienced the rage following a failed compounding plan. I am able to go like "Oh my god, every one of the painstaking trades I've make prior to now month are all in VAIN, in VAIN!!!" It isn't nearly losing money. It is really disheartening. It is a nightmare. So, for your personal very own sake. Be sure to don't attempt a hundred% compounding in forex.
 

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Compounding is very important. I do believe that I can handle my account in here without any problem. I'm so happy with the way things are for me. I do believe that I can end up making some good income in here without any thing to say or do. So lets just hope we can sustain and maintain our account in here without any problem at all. I'm sure I can and I will.

To all people.I'm totally surprise that you are capable of copy and pasting in this forum. You copy and paste my post.

http://www.digitalmoneytalk.com/topic/4748-do-you-think-compounding-is-important/page-7

I'm sure its not the first time that you have done this.

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Everyone wants to grow his capital, that is where compounding comes in. The more capital a trader has, the higher the chances of making some high income as well. Not that he can't make something higher with low capital but it sometimes becomes much more risky. Compounding isn't a bad thing but at the same time, it has to be checked.

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Everyone wants to grow his capital, that is where compounding comes in. The more capital a trader has, the higher the chances of making some high income as well. Not that he can't make something higher with low capital but it sometimes becomes much more risky. Compounding isn't a bad thing but at the same time, it has to be checked.

Its a risk appetite vs our goal of earning more. I do compounding if my trading capital is less than 50 dollars. But in my 100 dollars and above trading capital I stick to my long term approach. I just can't afford to take more risk for me its more like a saving especially when theirs a breakout and I need higher margin. This is the main reason why I don't compound on my big trading  accounts.

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That is good for you. At least, while we aim to earn high, we should also know that there is the risk of losing which is inherent in Forex. In between though, it is also safer having a higher capital than a lower one as it makes you have that courage of trading with something better than the everyday trading.

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  • 2 weeks later...

Right now the smallest account that I have is 62 dollars and 142 dollars and so far I manage to survive in my 62 dollars account but sad to say the 142 dollars is in 40% free margin. Its really hard to compound if we have limited funds. Especially since compounding also means compounding the risk.

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Compounding is very good to be sincere but for me to be that trending I do compounding sometime and its very profitable for me so there is no two ways about it what I know is that if you do compounding there is a greater chance that you can gain more profit

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